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Travel Agencies contribute over $2.3 billion to GDP in 2014

BusinessDay
4 Min Read

The National Association of Nigeria Travel Agencies (NANTA) on Wednesday said it contributed over $2.3 billion to the nation’s treasury in 2014 from ticket sales and tour packages.

The association which also berated commercial banks for selling airline tickets, said if the Central Bank of Nigeria (CBN) does not call the banks to order its members will be pushed out of business.

The travel agents said it is going to engage the Central Bank to request the banks to focus on their core business of banking and not venture into ticket sales not covered in their terms of engagement.

Speaking at a briefing in Lagos, Aminu Agoha, the association  National president  said travel agents are facing  a myriad of challenges if not adequately addressed   could push them out for business.

He said there is need for government to protect the interest of travel agents in Nigeria.

“One of the burning issues is the sale of Airline tickets by Nigerian Banks. Banks in Nigeria have become “jack of all trades” and is gradually and consistently encroaching on all businesses including specialized areas such as ours.

“Are they licensed to act as Airline agents?  Travel agents undergo a rigorous accreditation process before they are allowed to sell airline tickets.

“Why are airlines colluding with Banks to sell tickets by offering Banks Commission and offering agents none?

Recently, the general public has been inundated with adverts by Banks in this country making ridiculous offers to the general public for the purchase of air tickets from such banks.

“This growing trend portrays a dangerous situation whereby the banks have abandoned their core business of providing financial services to the public and delving into a business venture that they are not legally licensed to perform.”

He lamented the parlous state of airport facilities in Lagos, Kano and Port Harcourt describing them as unacceptable.

“NANTA is very worried about the current state of most of our airports, particularly the Murtala Muhammed Airport, Lagos; Mallam Aminu Kano International airport, Kano and the Port Harcourt International airport, Omagwa.

“These airports have suffered serious neglect and infrastructural decay over the years.  This has led to the withdrawal of operations by major foreign airlines operating in this country.”

On air fare disparity he said “We do not understand the great disparity in fares between what the airlines offer to the Nigerian market and what they offer elsewhere in the world.

“The disparity in fares is alarming and we wonder why Nigeria should be singled out for this rip-off. We see no reason why a flight ticket from Accra, Ghana to Europe or USA on some airlines would be cheaper than from Lagos to the same destinations on the same airline. For instance, a first class ticket to Las Vegas from Lagos is N1.8 million more than a first class ticket to the same destination from Accra! Nigerian travellers are now developing Ghanaian economy.

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